Strengthening of Business Cooperation Between China, Korea, and Japan will Fuel the Global Economy

ABSTRACT

Senior officials belonging to China, Japan, and Korea gathered together to commence their 23^rd trilateral meeting which was supposed to be held between the finance ministers, and chiefs of the central bank from these three countries in Incheon, South Korea on Tuesday, 2^nd May 2023. Senior officials such as Choo Kyung-Ho, who is the finance minister of Korea, along with the governor of the Bank of Korea, Rhee Chang-Yong also joined this trilateral summit.

ASEAN and these three nations entered first started their economic cooperation in the year 1997 and since then it has been carried forward successfully. This trilateral meeting between the economic diplomats of China, Japan, and Korea was the first face-to-face meeting after the year 2019.

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ALL THREE NATIONS ARE SET TO GROW THEIR FINANCIAL TIES AND BOOST THE GLOBAL ECONOMY

Based on the statement delivered by the Finance Minister of Korea, the trade and cooperative ties between Japan, Korea, and China will surely bring a positive impact on the growth of Asia along with the global economy. Adding more to this statement, Choo Kyung-Ho also mentioned that among all three nations, Korea will be playing the most active role in maintaining cooperative ties with the other two countries.

Choo Kyung-Ho also stressed many important topics. He also mentioned a very important statistical figure in his speech according to which Japan, China, and South Korea alone contribute 20% to the total global economy. With respect to the ASEAN region, the contribution of these three nations is over 80%. This statistic is correct to a certain extent, and we also have to agree that as the global economy reaches this point, the role of this trilateral cooperation can be of utmost importance to maintain the trade values of the global economy.

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WHY ARE THESE NATIONS STRENGTHENING THEIR FINANCIAL TIES?

The main reason behind strengthening financial and trade ties among these three North-Eastern Asian countries is the loosening of trilateral trade relations between them. Although these nations are good friends of each other and share a very cordial relationship, still the trade among them has declined. Hence, the cause behind this trade was to revive the trade between these countries so that it can benefit the global economy as a whole.

The reason was also given in the meeting, that is why trade has declined amongst all three countries, and the cause was the pandemic due to which the imports and exports of these nations declined. To reduce the negative and lasting impact of the pandemic, this meeting was held so that trade can start like before without declining the global economy.

The meeting was a great success as all the diplomats of the three countries agreed to the points mentioned and accepted the cause and became ready to further strengthen the financial and trade ties to start imports and exports at full pace.

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GLIMPSE OF JAPAN AND KOREA BILATERAL TRADE

In this section, we are going to give you an idea that how the bilateral trade between Japan and Korea is going for the last 5 years.

Based on the information derived from Japan Trade Data and Korea Trade Data for the last five years, the total imports and exports to and from Japan to Korea were as follows:

As per Japan Export Data for the past five years, the exports remained more than imports which means that Japan enjoys a trade surplus every time whenever it trades with Korea.

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GLIMPSE OF KOREA AND CHINA BILATERAL TRADE

Moving forward, here we will see some trade statistics between Korea and China. We will examine which country maintains a trade surplus over a span of five years. So, as per China Trade Data we have shared the statistical table below:

In this scenario, Korea enjoys a trade surplus every single year which means that exports of the nation are more than its imports when Korea trades with China and this impacts Korea Export Data positively, whereas, as the exports of China are less than its imports, the China Export Data shows a negative trade balance.

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GLIMPSE OF JAPAN AND CHINA BILATERAL TRADE

Finally, the last statistical table below is made with respect to the bilateral trade between Japan and China. In this table, we have compared the imports and exports of Japan with respect to China over the last five years.

 As it is clearly visible and understandable from the table Exports from Japan to China are more than exports of China to Japan. This means that Japan's Trade data shows a positive trade balance whereas, China's Trade Data shows a negative balance in all five years.

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CONCLUSION

It’s time to wrap up this informative and insightful blog that refers to how the financial and trade ties between China, Japan, and Korea would put a positive impact on the Asian as well as global economy. It is right to say that the contribution of these three nations is very crucial in building the global economy. The ties between these countries will surely have a very good impact in the forthcoming years.

If you are a trader and want to ship your products and services to any of these nations, then get in touch with us for the most accurate and correct Import Export data reports for more than 70 countries. We also provide customized reports to our clients for better and easier understanding. We would be more than delighted to assist you.

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